Accuform

In: Business and Management

Submitted By fastforward
Words 1863
Pages 8
MISALIGNED VALUE PERCEPTIONS: DYNACOAT & CREASEFREE
A fundamental problem with AccuForm, an equal joint venture between DynaCoat (Germany) and CreaseFree (Hong Kong), is the fact that its two parent entities have conflicting corporate cultures that have not been reconciled. Headquartered in Hong Kong, AccuForm leveraged the production capabilities of both its originators, but failed to merge their distinctive value sets. DynaCoat, a German textile-coating producer, believes in holding its employees to strict codes of conduct. The company places value on ensuring the professional integrity of its workforce and is dedicated to safety and environmental protection. Producing high quality, standardized chemical coatings worldwide, DynaCoat is the ideal corporate citizen. In contrast, CreaseFree, a Hong Kong OEM of wrinkle-free clothing, has values that are at odds with DynaCoat’s. The company’s mission is low cost leadership, by any means within the law. While DynaCoat strives to exceed social expectations, CreaseFree only does what it must to meet legal requirements. Like many other traditional Chinese businesses, CreaseFree disregards formal control systems and depends on guanxi familial and other personal connections to accomplish tasks. This means that excessive gift giving; favors, kickbacks, and bribes all fall within the range of regular and acceptable business activity at CreaseFree. The company has no concern for corporate stewardship. As AccuForm’s business activity progressed, CreaseFree’s culture became prominent. The majority of Kim’s employees have been transferred from CreaseFree or are locals from China, thus bringing their already instilled values and business culture with them. Lacking moral courage, Kim has allowed them to continue working in the manner that they choose. A large part of this problem stems from the fact that Kim’s performance goals are…...

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